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Fort Wayne billionaire Chuck Surack has acquired a hotel on the east side of downtown Indianapolis in hopes of derailing a plan to redevelop the adjacent Indianapolis Downtown Heliport site as part of a new soccer stadium.
Surack, founder of online retailer Sweetwater Sound, purchased the La Quinta Inn hotel at 401 E. Washington St. for $14.53 million on Aug. 30, according to a sales disclosure form obtained by IBJ. He bought the property through the holding company Washington 401 LLC.
Surack also owns the site of the former Adult and Child Services building at 603 E. Washington St., which also is adjacent to the heliport site. Surack purchased that property for $8.2 million last year.
Both real estate purchases are intended to discourage Mayor Joe Hogsett’s administration from disposing of the heliport so the property could be used to build a soccer stadium. Hogsett’s administration has been working with an anonymous investor group to attract a Major League Soccer franchise to Indianapolis, and it has identified a collection of properties necessary to build the stadium that include the heliport land.
The properties that Surack has purchased aren’t necessarily required to develop the stadium, but he hopes that having an uncooperative land owner on the prospective stadium’s front doorstep will make the city think twice about proceeding.
“I’m not trying to make it more difficult for the city; I just want the city to think about what the right decision is,” related to the future of the heliport, Surack said. “At this point, I would like to think they don’t need it and they [can] go build the MLS stadium somewhere else. If they come to me, I’m not going to sell it outright.”
Lena Hackett, who owns a three-story building at 10 S. New Jersey St., just south of Maryland Street, told IBJ in April she was made an offer on her property by an undisclosed party, which she declined.
The city’s Department of Metropolitan Development has a memorandum of understanding with the heliport’s owner, the Indianapolis Airport Authority, that gives it exclusive rights to acquire the building or select another buyer. The IAA recently began moving ahead with long-delayed plans to decommission the heliport.
Surack’s interest in the heliport and planned stadium stem from at least a couple of sources.
In May, Surack became a part-owner and financier for the Indy Eleven soccer team, which has been at odds with Hogsett since the city walked away from talks to support plans for a $1.5 billion development on downtown’s west side, to be anchored by a stadium for the team.
Surack told IBJ his purchase of the La Quinta was independent of his role with Indy Eleven and came without input from Indy Eleven majority owner Ersal Ozdemir.
Surack also owns Sweet Helicopters, which uses the heliport during major sporting events and concerts, such as the Indianapolis 500 and Indianapolis Colts games.
He said he thinks the heliport remains a valuable asset for Indianapolis as technology for autonomous flying vehicles rapidly advances. Proponents say such technology could make short-distance air travel more commonplace.
Surack told IBJ that the city of Indianapolis would “have to go through eminent domain” in order to acquire the La Quinta Inn, as well as his other holdings in the area.
The La Quinta occupies just under six-tenths of an acre at the intersection of Maryland, New Jersey and Washington Streets. The hotel was previously owned by Shelbyville-based APS Hospitality Inc. According to property records, the building was constructed in 1995. In addition to La Quinta, it’s also been had stints as a Days Inn and Best Western Plus.
Representatives of unnamed prospective buyers have been trying to acquire land in and around the proposed stadium site for months.
Surack said he’s not involved in trying to acquire properties that would be within the bounds of the proposed stadium site, which is generally bounded by Alabama Street to the west, Washington Street to the north, East Street to the east and the CSX railroad lines to the south.
“I’m just trying to keep the heliport open,” he said. “And, you know, we have a lot of people that use it and need access to a close hotel.”
Surack acknowledged that he must determine whether he’ll further invest capital in the hotel sooner rather than later, because a franchise agreement requires the property to be updated in order for it to maintain the La Quinta brand.
While he typically improves properties that he buys, Surack said, he’d rather not waste money if the site is ultimately expected to be acquired by the city via eminent domain.
“I want to be really clear: I’m not trying to hurt the city,” Surack said. “I just want the city to slow down and really think about it. Maybe if there are some obstacles, they’ll go, “Ooh, maybe this isn’t the best place to build the MLS stadium.’”
The MLS soccer stadium ultimately would be held by the Marion County Capital Improvement Board, which owns most of the major sports facilities downtown. The CIB has set aside $66 million as part of its proposed 2025 budget for capital investments tied to a soccer stadium development.
Calls and voicemails to city officials requesting comment for this story were not immediately returned Friday evening.
In April, the Herb Simon family, which owns a majority stake in the Indiana Pacers and Indiana Fever, purchased a 5.2 acre parking lot at 101 Alabama St. considered key to developing the soccer stadium.
The purchase lent weight to widespread speculation that the Simon family is among the investors trying to bring an MLS team to Indianapolis. A representative for the family told IBJ that the family’s interest in the lot “predated soccer” and that the acquisition was entirely separate from the city’s plans.
Pacers Sports & Entertainment, the parent company of the Pacers and the Indiana Fever, has in recent years increased its use of the lot for Gainbridge Fieldhouse-related activities nearby, including parking for staff and television broadcast vehicles.
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Quote of the article: “I’m just trying to keep the heliport open,” he said. “And, you know, we have a lot of people that use it and need access to a close hotel.” (…. the La Quinta?)
Out of town billionaire throws tantrum. Maybe Surack should make up the funding deficits that caused the city of Indianapolis to walk away?
Here’s the reality – Ozdemir ain’t even gonna be the majority owner of an MLS team. They don’t want him. We can either have a forever second-division team in a stadium that we as taxpayers are going to pay out the nose for, that doesn’t make economic sense … or we can have an MLS team. Pick one.
I’d like to see the Venn diagram of people who are rich enough to own a helicopter … who stay at a downtown La Quinta that gets reviews like this (from TripAdvisor):
“Maybe the worst hotel I’ve ever stayed at. Sheets were dirty/ stained, elevator broken, we put in for 2 queen beds and got 2 fulls (what hotel even has smaller than queen beds?!?!), not enough parking, NO CRIB for our 8 month old (wtf… a hotel without a crib…), no real door to the bathroom (sliding door that doesn’t stay shut). DO NOT STAY HERE…”
“ After my card was processed was told hotel Flooded and Elevator was broken. then after turning in for the night found out the AC sounded like a LearJet taking off as fan motor bearings were shot.”
“The continental breakfast was lukewarm microwaved egg mix, watery coffee, no fruits to speak of and the gym was not in useable condition”
Maybe eminent domain and demolition is the best option.
This is maddening. The heliport in its current location is asinine. Living near the heliport, this is an embarrassingly undeveloped baron collection of land for a city of this size that borders right up against our downtown core. This certainly will hurt the city just so out of town rich guy can conveniently fly in and out of our city.
“A city of this size” as if this isn’t one of the most embarassing low density, only large because of consolidation jurisdictions in the entire county. At least we have Jacksonville to point at
@Joe B if they are comparing A/C bearings to a Learjet…maybe he’s right. 🤣
Thank you Chuck!
LOL. You think he did this to benefit the city?
He’s just trying to make a few dollars off of it!! Goof!
Sorry sloppy Joe but you need to go!!
And his buddies!!! Immediately!!!!!
We keep the heliport!
The City will be thanking this guy years from now.
Foolish move to decommission the only downtown helicopter in a growing city and metro area.
As the city grows, it gets less and less usage.
“Information from the Indianapolis Airport Authority shows that in 2019, the most recent year for which data is available, the heliport saw just under 1,700 total operations—takeoffs and landings—compared to nearly 3,400 a decade earlier.”
I know when I think of hallmarks of a growing city, attractive to other people, they always think about the heliport.
Let’s just set the soccer stadium angle aside, That whole quadrant of downtown is a dead zone right now and the heliport is a big part of standing in the way of any kind of development.
The leaders of other Midwest cities, who, by the way are lapping Indy right now are laughing at the short sighted investors and the uninformed citizenry that support them.
No one is keeping the heliport. The city owns it and the city can close it. As for this nearby property, the city has the trump card of eminent domain.
Whether this guy wants to sell or not, he can be forced to sell and legally the city only has to pay fair market value, not an inflated price he may want.
He can run his seedy hotel for the next few years. until the city takes it
And more than half those take offs Joe B mentionEd are from IU Health Lifeline helicopters. And they will be able to land/take off from two landing pads being integrated into the new Methodist hospital campus.
Agreed
I agree, B S!
I wish I had a rundown hotel to sell for 3 to 4X market price.
Go buy one
This is what happens when you have a mayor that’s gone rogue.
He is doing the same thing to a future vibrant area on the near east side.
Huge housing planned by 1820 Ventures. Multiple apartment complexes already on Washingon. 600k homes at Shelby and Engish, Garoldine’s steak house on Shelby. Now, the Mayor proudly announces the purchase of land on Shelby and Georgia for some elaborate homeless shelter. This would have been a great corridor to Fountain Square.
His soldiers didn’t discuss it with us. That tells us he new it was a bad idea. Anyone want to buy us out living next to mr. Hogsets new adventure?
He deserves this MLS hickup.
🙄🥱
Find a rich friend
It’s not a thread until John comes to complain about the risks of being a property developer.
This won’t make anybody think twice about anything. It does not impact stadium plans at all. Surack knows he’s fighting a losing battle, so he’s going to turn into a developer.
Either that, or he’s just really, really dumb.
The forced property clearance move with so many obstacles is/was likely doomed to fail. Since Hogsett and his ‘allies’ are/were determined to keep Odzemir out of the loop they should have identified property with limited obstacles for an ‘easy path’ forward. For instance the Elanco property development. The city is still having a hard time finding corporations to fill in the development. In addition to the new obstacles now presented, the Heliport site is and has been a city ‘amenity’. From the beginning, the need to clear the way on such a small set of parcels was a ‘reach’. At best, Hogsett’s proposed location was too small. The required timeline by MLS is now seriously jeopardized before even getting started. Hogsett’s unilateral announcement caught everyone by surprise. As this thing unfolds, we’re seeing why.
The MLS has already said that they’re not expanding for a few years. They’ve also made it clear that Ersal Ozdemir isn’t going to be an owner in their league.
Proceeding with Eleven Park for the Indy Eleven makes as much sense as building the Indianapolis Indians a 40,000 seat major league stadium.
Glad to see someone with foresight striving to keep our heliport downtown. It is a unique asset. Once it is gone, unlikely it will ever be able to return.
If he wants to throw his money away, he is welcome to do so,
The city has the power of eminent domain and legally only has to pay the fair market value for the property, not the inflated price he may want.
Whether he wants sell or not, he can be forced to do so. Litigation can at best slow things down, but generally the city can take the property and fight over the compensation after.
So, no, not much “foresight.” The heliport will be gone. Whether that will prove to be a mistake or not will be left up to those in the future to decide.
The city isn’t going to use eminent domain here, let’s be realistic.
Murray, the city uses eminent domain all the time for redevelopment projects, including building sports facilities.
What makes you think they would not use it to acquire a crummy old hotel?
I would say you are the one being unrealistic.
Who is ‘someone’? The City controls the heliport. Why does it need to be in this location? It could be located at the old GM plant and be a five minute Uber ride to… the old heliport.
Let’s look at the map …. if you wanted to be a private developer and get into the heliport business, you could buy the Sodrel Truck Lines building at Morris and West Street. Ten minutes, two miles to the Conrad Hotel … an actual nice hotel.
This is all about Chuck Surack wanting the city of Indianapolis to maintain a money losing heliport for his benefit.
Rich kid throwing a fit, and throwing his money away. Maybe he should donate that $14M to a good cause rather than his lost cause of saving the heliport for his own benefit.
Agreed. Sad part is it will COST THE CITY MONEY because eminent domain is never cheap. He’ll probably make money (tax payer $$) playing games with the city.
The city would rather not drag this out via eminent domain so I would consider this purchase a bargaining chip for future ownership % in the new club. Worst case scenario het gets his money back even after required improvements. After all the horse trading is done with him and Ozdemir, he might end up with small % in the MLS team, which would be better than his current position with the Eleven.
What’s very telling is that Surack isn’t putting any of his money into the Indy Eleven stadium. Ozdemir asked for yet more city money which, along with the MLS telling the city they needed a new owner, caused the city to walk away.
Surack is just here to throw sand in the gears of the Heliport redevelopment because he’s got the money to do it. There are numerous places he could put a place to land a helicopter really close to downtown Indianapolis.
Speaking of new owner, it’s rather telling that Ozedmir has gotten much better publicity from the new IBJ owner than the old one. Because the old one ran stories like this
No-holds-barred tactics lifted developer Ozdemir
https://www.ibj.com/articles/46528-no-holds-barred-tactics-lifted-developer-ozdemir
And the new one gives us puff piece like this
Ozdemir says calculated risks, long-term thinking have shaped career
https://www.ibj.com/articles/ozdemir-says-calculated-risks-long-term-thinking-have-shaped-career
please send the link from the MLS saying Ozdemir will never be an owner. I never heard that from anyone but the hogsett people.
Yes, the Hogsett people who have had meetings with the MLS. Which is more than you can say for Ozdemir, who couldn’t land a franchise when they were a lot less expensive than they are now.
The same Ozdemir who came back to the city and said they needed another quarter billion in bonds backed by the city to finish the stadium?
Explain to me why you’d put taxpayers on the hook for those bonds for that owner. This isn’t the Pacers and Colts who are here and who are staying. It’s for a guy who is hoping to do something that … he’s already failed at. And by all indications, didn’t have the wealth to make it happen.
Indianapolis got lucky once with the Hoosier Dome. You’re asking the city to spin the wheel and try again and force a sports team to take an owner they don’t want as part of it. Doesn’t seem like a good idea to me.
https://www.ibj.com/articles/how-the-citys-negotiations-with-keystone-group-broke-down
Joe B: When US Taxpayers realize there government lies to them about everything, all the time they will then understand the evil we are dealing with!
Just because Hogsett and his staff have met with MLS, does not make anything they say true!
I guess I will trust Joe Hogsett more than a guy who wrote big checks to our legislators to deny the Armenian genocide ever happened. I still say that the first game in the new stadium should be an international friendly between the US and the Armenian National Team.
There is nothing to “drag out.” With eminent domain, the city give 30 day notice and the owner must accept or or initiate negotiations. If negotiations fall apart, the city can proceed to take the property, and ensuing litigation is over the damages owed to the owner, not whether the city can or cannot take the property.
Generally, the city is only obligated to pay the average value determined by two independent appraisers. Surack doe not get to set his price.
And, the city can and has used eminent domain many, many times, including for building sports facilities.
Finally, the city is in no rush to build a new MLS stadium, as there is not even a team yet, so the city can bide its time.
I would be very interested in learning Hogsett’s investor group for the new team and stadium. That would shine some interesting light on the conversation.
If joe B is referring to me, I’m smiling. I’m beyond being bullied joe. It’s the lack of integrity in the Mayor’s leadership.
Im glad i please you if my comments make you happy.
As one of the opposition to closing the Heliport and one of the team who originally developed the heliport with the city’s IEDC after a lengthy study that warranted the heliport for both emergency and business and maintenance it never made sense to dump it for another taxpayers burden. My suggestion is for the city to join in with Ersal and develop the original plan of the original plan for a stadium and that outstanding development on the site originally planned. It would seem there is a way to resolve these ancient grave sites and turn that vacant site into a revenue generating opportunity. Perhaps providing a stipend of the development revenues for those relocation costs to the extent needed. Just my thoughts.
This is a very small move on Mr. Surak’s part, very small. It makes no economic sense for him or the city of Indianapolis, which is not his home. Pay a premium price for a third-class (at best) motel in a part of the city that’s a true dead zone? Huh? It seems personal and very petty. The heliport outlived any practical purpose a long time ago. Can you hear that? It’s crickets! I’ve spent several hours at a time in the neighborhood see no activity of any kind, human or helicopter. The heliport is one big ugly, empty, bulky building. Three television stations and IMPD based or regularly flew out of the heliport, but that was long ago. They’re all out of the helicopter business. Whatever you think of Hogsett and MLS hopes (I say get that team and build that stadium — somewhere,) Mr. Surak, whoever and wherever you are, you’re an interloper who hardly has the best interest of the city in mind.
You know what would make a great downtown heliport? The old Diamond Chain site. Could even build a tunnel into Lucas!
I think what he meant when he said close to hotels is all the downtown hotels. The heliport is also the ‘backup landing site’ for all the downtown hospitals when their helipads are full/during maintenance. Ambulances travel all the time from the heliport to the hospitals, esp. the ones with multiple helicopters. During the Indianapolis 500, the heliport is full, not just from Sweet charters who fly into and out of the Speedway every 15 minutes with multiple helicopters staged there, but other private entities as well. I believe the decreased traffic there is really only due to the news agencies/Law Enforcement not using them anymore since drones are better for them.
As has been noted a bunch in this thread, a second heliport can be located many places with super easy access to downtown. It definitely does not need to be located in the center of downtown, on land that could be a stadium or many other ‘higher’ uses.
The Indianapolis Motor Speedway has around 1000 acres. If needed, there’s room to land helicopters on the two days a year it matters.
IU Health is building a new maintenance facility and on-site heliport as part of the Methodist rebuild. The Downtown Heliport will be obsolete as soon as it’s finished.
These people have WAY too much money.
Joe B — welcome back! We missed your comments on the Hogsett articles. Glad to see your internet connection is restored and you are able to regale us with 10 separate posts sharing your vast knowledge of urban heliport real estate. If only you had the same infinite knowledge about drunken sex predator mayors.
Separate note: it’s interesting to see that Democrat billionaires (Simon) who get an insider real estate tip from their lapdog mayor are Good! but billionaires who make a business move going against the Democrat mayor are Bad!
Chuck, funny you mention those two names. Because the Simon’s are spending a lot of money to replace the old CSX building with a new hotel and performance venue. That’s progress.
Meanwhile Chuck Surack is interested in things not changing. He wants a dumpy old heliport to be maintained in the downtown core for his benefit, and if he can’t have his way, well, Indianapolis residents should suffer because he can’t be bothered to drive a few miles. And he isn’t putting his money into either Ozedmir’s efforts to land an MLS team or the woefully underfunded Eleven Park. Why is that, Chuck?
On reflection, Chuck, taking inspiration from the Purdue defense on Saturday before getting behind the keyboard this afternoon probably wasn’t the right move.
I figured someone would go down the worn-out D versus R rabbit hole. This whole red versus blue thing is so tired and small. It must give you some kind of joy, but for grown ups it’s really boring.
“I’m not trying to make it more difficult for the city” he says after purchasing properties just out of petty spite (or as a mean to force the city to slow down and reconsider, as he puts it), and claiming the city will have to use emminent domain to take them back if they want them.